Nearly Half of All U.S. Homes Are Purchased in Cash

8/29/2013 8:43PM

All-cash purchases accounted for 40% of all sales of residential property in July 2013, according to a new study. But experts caution that this increase may not be a good sign for the health of the housing market. MarketWatch's Jim Jelter reports (Photo: Getty Images)

This transcript has been automatically generated and may not be 100% accurate.

I ... the ... are struggling to St ... when you break it down payment on all ... there's a shocking piece of information ... forty percent of homes sold in July ... were cash deals ... all that ... by Amgen Jelter MarketWatch ... and our colleague court patrols put together what many of those ... are some amazing stats on the flood of foreign currency pouring into the residential housing market ... according to the real estate firm RealtyTrac ... July was the second highest month ... for cash deals ... since they started keeping track in two thousand eleven ... the only time it was higher was in March two thousand twelve ... when it hit a staggering fifty three percent ... a separate study by Goldman Sachs puts the number even higher ... Coleman claims fifty seven percent of home sales in July were all cash deals ... that compares with only nineteen percent in two thousand five ... back from the housing market was still building up to what three years later ... became a full blow mortgage crisis ... so where is Cash Kane ... RealtyTrac's is Dallas' top the ones ... with cash sales up eighty two percent from June to July ... insane lowest ... fare sales jumped sixty six bps ... all this cash of course is driving up home sales nationwide ... which looks good on paper ... but economists also see a downside to ... first of all they warn that this is not a sustainable trend ... nor is it good for the overall health of the housing market ... so much cash washing around in the marketplace is bound to skew prices to the upside ... it's also a sign for the rest of this the financing is costly and still large debt ... and that means the pool of potential buyers as being limited by a combination of tight lending standards ... and rising interest rates ... rates on thirty year mortgage at four point five eight percent last week ... their highest level in two years ... Sonora dividers ... who just walks into a really office employees down hard currency for all ... well obviously ... rich people ... were snapping up properties of a relative bargain in reading about ... investors try to make a quick buck by flipping properties ... are also in it's ... as well as well heeled retirees ... in the process of downsize ... according to a spokesman for the National Association of Realtors ... investors accounted for about thirty five percent of all cash deals ... well retirees' accounted for about twelve percent ... the rest include a mix of additional martyrs ... and for an hour ...